Bloomberg Partners Former Hedge Fund Manager Novogratz to Launch Cryptocurrency Index

Bloomberg Partners Former Hedge Fund Manager Novogratz to Launch Cryptocurrency Index

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May 10, 2018 by Henrik Bliss
1605
  Financial business news leader Bloomberg in partnership with billionaire ex-hedge fund manager Michael Novogratz has launched the first institutional-grade benchmark designed to track liquidity of cryptocurrency markets. The index was developed in partnership with Galaxy Digital Capital Management LP, a leading digital asset management firm founded by Michael Novogratz, formerly a partner at Goldman
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Financial business news leader Bloomberg in partnership with billionaire ex-hedge fund manager Michael Novogratz has launched the first institutional-grade benchmark designed to track liquidity of cryptocurrency markets.

The index was developed in partnership with Galaxy Digital Capital Management LP, a leading digital asset management firm founded by Michael Novogratz, formerly a partner at Goldman Sachs.

The Bloomberg Galaxy Crypto Index  (BGCI) measures the performance of ten USD traded cryptocurrencies including Bitcoin, Ethereum, Monero, Ripple, and Zcash. Constituents of the (BCGI) are diversified across different categories of digital assets, such as stores of value, mediums of exchange, smart contract protocols and privacy assets.

In a statement released on Wednesday, Alan Campbell, manager of Global Product Indices at Bloomberg, says:

“..[The] launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies. The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”

The BGCI has been developed using a rules-based methodology and data sources that have passed through the high level due diligence at both Bloomberg and Galaxy Digital Capital Management, the companies say.

Galaxy Digital Capital Management LP is a diversified asset management firm dedicated to the digital currency and blockchain sectors.  The firm manages three distinct business lines: Index Fund Management, Blockchain Ecosystem Funds, and Opportunistic Funds for clients.

“The herd is on the move,” Novogratz said of the partnership on Twitter. “This is an important piece of the architecture that institutional accounts need to treat crypto as a new asset class.”

The development entails the movement of financial service providers into the cryptocurrency space. The NYSE parent company Intercontinental Exchange (ICE) has reportedly launched a crypto trading platform form institutional investors.

Also, financial giants Goldman Sachs recently hinted that it was planning to launch the first Wall Street based cryptocurrency trading desk. The bank says it will start trading bitcoin futures with its own money for clients and will also develop a bitcoin derivative which will be traded on the platform.

Bloomberg clients can now access the index by using the ticker BGCI Index <GO>.

 


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